Motorcycle Holdings (MTO) H1 2025 earnings summary

Executive summary

• Sales revenue rose 12% year-over-year to $328 million for 1H25, with net profit after tax up 43% to $9.4 million and underlying EBITDA up 20% to $26.2 million, driven by diversification, operational improvements, and disciplined execution.

• Outperformed the market in new retail vehicles, increasing market share to 15.8% and achieving record used vehicle unit sales.

• eCommerce sales surged 44%, supported by increased digital engagement and new business systems.

• Focused on operational efficiency, inventory reduction, and significant net debt reduction.

• New leadership is focused on sustaining growth and capitalizing on emerging opportunities.

Financial highlights

• Sales revenue increased 12% year-over-year to $328 million; operating gross profit up 10% to $82.8 million.

• Underlying EBITDA rose 20% to $26.25 million, with margin improving to 8.0% from 7.4%.

• Net profit after tax up 43% to $9.45 million; basic EPS up 44% to 12.8 cents.

• Interim dividend of 8 cents per share, fully franked, up from 3 cents per share in 1H24.

• Net bank debt reduced by 36% to $24.2 million; cash on hand increased to $20.8 million as of December 31, 2024.

Outlook and guidance

• Cautiously optimistic for the second half, with continued focus on cost management, digital capabilities, and debt reduction.

• Targeting further growth in used vehicles and e-commerce, with ongoing efforts to maintain margins and evaluate acquisition opportunities.

• Positive outlook for OHV sales due to favorable agricultural conditions.

• Planning process underway for FY2026 and beyond, including capital management and potential M&A.

• No significant subsequent events expected to affect future operations.